Opinion Poll. Small Businesses Support ACA Over Replacement Plan. March 23, 2017

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1 Opinion Poll Small Businesses Support ACA Over Replacement Plan March 23, 2017 Small Business Majority th Street, NW, Suite 950 Washington, DC (202)

2 Executive Summary Some lawmakers may be intent on repealing and replacing the Patient Protection & Affordable Care Act (ACA), but new scientific opinion polling shows small business owners support the ACA over the American Health Care Act (AHCA), the Republican plan to replace the law currently being considered in Congress. A national scientific opinion poll conducted March 17-20, 2017 for Small Business Majority by Chesapeake Beach Consulting found that small businesses favor the ACA over the AHCA by a 2:1 ratio. Roughly half of respondents (49%) say they would choose the ACA over the AHCA, while only 25% said they would choose the replacement plan over current law. Fourteen percent said they would choose neither plan. Figure 1: Small businesses favor the ACA over the AHCA by a 2:1 ratio If you had to make a choice between the Patient Protection and Affordable Care Act and the American Health Care Act, which plan would you choose? Strongly Not strongly Patient Protection and Affordable Care Act 39% 10% 49% American Health Care Act 16% 10% 25% Both equally 5% Neither 14% Don t know/refused 6% 0% 10% 20% 30% 40% 50% 60% More than half of small businesses (52%) support the Affordable Care Act, and half of those who support it say they strongly support the law. After learning about specific provisions of the ACA, however, total support grows to 58%. Figure 2: Support for ACA grows after learning about provisions of the law Now that you have had time to review specific provisions of the Patient Protection and Affordable Care Act, do you support or oppose of the Patient Protection and Affordable Care Act, also known as Obamacare? Strongly Somewhat Support 31% 27% 58% Oppose 24% 14% 38% Don't know/refused 4% 0% 10% 20% 30% 40% 50% 60% 70% 2017 Small Business Majority 2

3 What s more, the survey found more than 1 in 3 small businesses or their employees (35%) are enrolled in coverage through the health marketplaces created by the ACA, and 21% are enrolled in Medicaid. One in five say they are enrolled in private insurance. When asked about the proposed American Health Care Act, legislation that would repeal and replace the ACA, small business support is initially split: 40% of respondents support the legislation, with 39% opposing it. However, once respondents learn about specific provisions of the AHCA, opposition grows to 51%, with 1 in 3 (33%) who strongly oppose the legislation. Figure 3: Opposition to AHCA grows after learning about provisions of the law Now that you have had time to review specific provisions of the American Health Care Act, do you support or oppose of the American Health Care Act, which repeals and replaces the Patient Protection and Affordable Care Act, also known as Obamacare? Strongly Somewhat Oppose 33% 18% 51% Support 14% 27% 41% Don't know/refused 9% 0% 10% 20% 30% 40% 50% 60% Survey respondents reviewed numerous provisions of the replacement plan, and results show small businesses oppose key components of the legislation. A majority (51%) disapprove of a provision that would remove the individual mandate and allow insurers to impose a 30% surcharge on individuals who allow a gap to develop between their existing health plan and a new health plan. And half (50%) disapprove of replacing existing healthcare tax credits based on age, income and geography with tax credits based solely on a person s age and not their income or where they live. The only specifics of the plan that small businesses do support are provisions already available under the ACA, including provisions that prevent insurance companies for charging more for pre-existing conditions and that allow young adults to stay on their parents plans until age 26. It s important to note that respondents are politically diverse, and do not necessarily view these issues through an ideological lens: 40% identify as Republican or Republican-leaning independents, 39% are Democrat or Democrat-leaning independents and 18% are pure independent Small Business Majority 3

4 Entrepreneurs oppose many provisions of the AHCA Sixty-three percent disapprove of reducing existing healthcare tax credits for many older Americans, which would result in a higher price for health insurance. Half (50%) disapprove of replacing existing health care tax credits based on age, income and geography with tax credits based solely on a person s age and not their income or where they live. Thirty-five percent approve of the provision. Small businesses also oppose proposed changes to current age-banding restrictions. Under the AHCA, health insurance companies could charge up to five times more to insure older Americans than they would charge to insure younger Americans, resulting in higher insurance costs for older entrepreneurs and for businesses with older employees. Two-thirds (66%) of small businesses disapprove of the provision. A majority (51%) disapprove of a provision that would remove the individual mandate and allow insurers to impose a 30% surcharge on individuals who allow a gap to develop between their existing health plan and a new health plan. Thirty-seven percent approve of the provision. Nearly 6 in 10 (58%) oppose a provision in the replacement plan that would allow those earning more than $774,000 per year (the top 1%) to receive a tax cut of approximately $33,000 per person by reducing the Medicare payroll tax they pay. A plurality of small businesses oppose converting the current Medicaid program to a block-grant system and eliminating additional federal funds for Medicaid expansion. More small businesses (45%) disapprove than approve of (37%) the provision, which would convert the Medicaid program in 2020 to a block-grant system under which each state would receive a fixed amount of money for every person who qualifies for Medicaid. The additional federal funding that covered expanding Medicaid under the ACA would be eliminated. Small businesses strongly support specific provisions of ACA Nearly 7 in 10 (68%) approve of the ACA s provision that provides tax credits to individuals and families who cannot afford health insurance to make coverage affordable. Nearly 8 in 10 (79%) approve of the provision that prevents insurance companies charging more or denying coverage based on a preexisting condition such as cancer, diabetes or high blood pressure. More than half (53%) strongly support this provision. A mere 16% disapprove of the provision. Seventy-three percent approve of the ACA s requirement that all health plans provide preventative services at no out-of-pocket cost to the insured. More than 7 in 10 (71%) approve of the small business tax credit. For small businesses that want to provide affordable health insurance to their employees, the law provides a tax credit of up to 50% of the cost of their employee s health insurance to make it easier to provide their employees healthcare benefits The vast majority (77%) approve of the provision that removes the annual and lifetime limits on the amount of coverage offered so that people are not forced into bankruptcy due to a medical condition. Sixteen percent disapprove of the provision. Nearly 7 in 10 (69%) support the provision that allows millions of young adults to stay on their parents healthcare plans until age 26, which provides health insurance to additional 3.1 million young people who were not previously covered. Under the law, states can expand Medicaid coverage to millions of new individuals with 100% reimbursement for these expenses from the federal government through 2020 and 90% reimbursement after Sixty-three percent of small businesses support Medicaid expansion Small Business Majority 4

5 Additional poll findings More than 1 in 3 small businesses or their employees are enrolled in marketplace coverage: 35% of respondents say they or their employees are enrolled in the Small Business Health Options Program, the individual marketplace or both. One in five say they are enrolled in private insurance. More than 1 in 5 small business owners and/or their employees are enrolled in Medicaid: 21% of respondents say they and/or their employees are enrolled in health coverage through Medicaid. Small businesses strongly support additional provisions of the Affordable Care Act: More than 7 in 10 (71%) support providing lower out-of-pocket expenses such as co-pays and deductibles for low and moderate-income individuals. Nearly 3 in 4 (74%) approve of the requirement that insurance companies spend at least 80% of premium dollars on patient medical claims or activities that improve healthcare quality. And 71% approve of the provision that requires insurance plans to offer certain services such as maternity care and mental health care. Methodology This poll reflects an Internet survey of 500 small business owners nationwide. The poll was conducted by Chesapeake Beach Consulting for Small Business Majority with a margin of error of +/-4.5%. The survey was conducted from March 17 to 20, Small Business Majority 5

6 Poll Toplines Small Business Majority Small Business Views on ACA and AHCA Poll 500 Small Business Owners Nationwide 1. How many people do you employ including yourself? 1 to % 26 to % 51 to % 76 to % 2. How long have you been in business? Less than one year... 5% One to three years... 18% Four to six years... 20% Seven to 10 years... 15% More than 10 years... 42% 3. Do you offer health insurance to your employees? Yes... 32% No... 67% Don t know... 1% Refused... <1% If no, don t know or refused skip to Q5. 4. Which of the following would you say is the primary reason you offer health insurance to your employees? (159 respondents) It helps to retain good employees... 32% I feel a responsibility to provide this benefit to my employees... 39% It helps employees stay healthy and productive... 18% It helps to recruit good employees... 2% This benefit is standard in my industry... 6% Other... 3% Don t know... 0% 5. Are you and/or any of your employees enrolled in Medicaid? Yes... 21% No... 70% Don t know... 8% 2017 Small Business Majority 6

7 6. In 2010 the Patient Protection and Affordable Care Act was signed into law. Would you say that you know a great deal, some, not too much or nothing at all about the Patient Protection and Affordable Care Act, also known as Obamacare? A great deal... 24% Some... 48% Not too much... 20% Nothing at all... 5% Don t know... 2% Refused... <1% GREAT DEAL/SOME... 72% NOT TOO MUCH/NOTHING... 25% 7. Do you support or oppose the Patient Protection and Affordable Care Act, also known as Obamacare? Strongly support... 25% Somewhat support... 27% Somewhat oppose... 13% Strongly oppose... 29% Don t know... 5% TOTAL SUPPORT... 52% TOTAL OPPOSE... 42% 8. Are you and/or your employees enrolled in the one of the plans offered under the Patient Protection and Affordable Care Act such as the Small Business Health Options Program or Individual Marketplaces such as healthcare.gov, or do you have and/or offer private group insurance? Yes, Small Business Health Options Program... 13% Yes, Individual Marketplaces... 17% Yes, both... 5% Yes, private insurance... 20% No... 38% Don t know... 5% Thinking now about the specific provisions of the Patient Protection and Affordable Care Act, please tell me for each whether you approve or disapprove of that specific provision. 9. For those individuals and families who cannot afford health insurance, the law provides tax credits to make coverage affordable Strongly approve... 38% Somewhat approve... 30% Somewhat disapprove... 14% Strongly disapprove... 10% Don t know... 6% TOTAL APPROVE... 68% TOTAL DISAPPROVE... 24% 2017 Small Business Majority 7

8 10. Large businesses with 50 employees or more are required to offer insurance to full-time workers Strongly approve... 35% Somewhat approve... 28% Somewhat disapprove... 12% Strongly disapprove... 17% Don t know... 7% TOTAL APPROVE... 63% TOTAL DISAPPROVE... 29% 11. All Americans are required to maintain a minimum amount of health insurance Strongly approve... 22% Somewhat approve... 23% Somewhat disapprove... 15% Strongly disapprove... 32% Don t know... 7% TOTAL APPROVE... 45% TOTAL DISAPPROVE... 47% 12. Insurance companies are prevented from charging you more or denying you coverage based on a preexisting condition such as cancer, diabetes or high blood pressure Strongly approve... 53% Somewhat approve... 26% Somewhat disapprove... 7% Strongly disapprove... 9% Don t know... 3% TOTAL APPROVE... 79% TOTAL DISAPPROVE... 16% 13. All health plans must provide preventative services at no out-of-pocket cost to the insured Strongly approve... 41% Somewhat approve... 32% Somewhat disapprove... 11% Strongly disapprove... 10% Don t know... 4% TOTAL APPROVE... 73% TOTAL DISAPPROVE... 21% 14. Millions of young adults are able to stay on their parents health care plans until age 26, providing health insurance to additional 3.1 million young people who were not previously covered Strongly approve... 43% Somewhat approve... 26% Somewhat disapprove... 13% Strongly disapprove... 14% Don t know... 4% TOTAL APPROVE... 69% TOTAL DISAPPROVE... 27% 2017 Small Business Majority 8

9 15. For small businesses who want to provide affordable health insurance to their employees, the law provides a tax credit of up to 50% of the cost of their employee s health insurance to make it easier to provide their employees health care benefits Strongly approve... 39% Somewhat approve... 32% Somewhat disapprove... 11% Strongly disapprove... 11% Don t know... 6% TOTAL APPROVE... 71% TOTAL DISAPPROVE... 22% 16. Annual and lifetime limits on the amount of coverage offered are removed so that people are not forced into bankruptcy due to a medical condition Strongly approve... 47% Somewhat approve... 30% Somewhat disapprove... 10% Strongly disapprove... 6% Don t know... 5% TOTAL APPROVE... 77% TOTAL DISAPPROVE... 16% 17. States can expand Medicaid coverage to millions of new individuals with 100% reimbursement for these expenses from the federal government through 2020 and 90% reimbursement after 2020 Strongly approve... 39% Somewhat approve... 24% Somewhat disapprove... 14% Strongly disapprove... 13% Don t know... 9% TOTAL APPROVE... 63% TOTAL DISAPPROVE... 27% 18. Provides lower out-of-pocket expenses such as co-pays and deductibles for low and moderate... income individuals Strongly approve... 43% Somewhat approve... 27% Somewhat disapprove... 14% Strongly disapprove... 10% Don t know... 5% TOTAL APPROVE... 71% TOTAL DISAPPROVE... 23% 2017 Small Business Majority 9

10 19. Insurance plans must offer certain services such as maternity care and mental health care Strongly approve... 45% Somewhat approve... 26% Somewhat disapprove... 10% Strongly disapprove... 13% Don t know... 5% TOTAL APPROVE... 71% TOTAL DISAPPROVE... 23% 20. Insurance companies must spend at least 80% of premium dollars on patient medical claims or activities that improve health care quality Strongly approve... 40% Somewhat approve... 34% Somewhat disapprove... 8% Strongly disapprove... 9% Don t know... 7% TOTAL APPROVE... 74% TOTAL DISAPPROVE... 17% 21. Now that you have had time to review specific provisions of the Patient Protection and Affordable Care Act, do you support or oppose of the Patient Protection and Affordable Care Act, also known as Obamacare? Strongly support... 31% Somewhat support... 27% Somewhat oppose... 14% Strongly oppose... 24% Don t know... 3% Refused... <1% TOTAL SUPPORT... 58% TOTAL OPPOSE... 38% 22. Republicans in Congress have introduced a plan, the American Health Care Act, which repeals the Patient Protection and Affordable Care Act and replaces it with this new plan. Would you say that you know a great deal, some, not too much or nothing at all about the Republican proposal, called... the American Health Care Act, which repeals and replaces the Patient Protection and Affordable Care Act, also known as Obamacare? A great deal... 16% Some... 35% Not too much... 28% Nothing at all... 18% Don t know... 3% Refused... <1% A GREAT DEAL/SOME... 51% NOT TOO MUCH/NOTHING... 46% 2017 Small Business Majority 10

11 23. Do you support or oppose the American Health Care Act, which repeals and replaces the Patient Protection and Affordable Care Act, also known as Obamacare? Strongly support... 14% Somewhat support... 26% Somewhat oppose... 13% Strongly oppose... 27% Don t know... 20% Refused... <1% TOTAL SUPPORT... 40% TOTAL OPPSOSE... 39% Thinking now about the specific provisions of the American Health Care Act, please tell me for each whether you approve or disapprove of that specific provision. 24. Existing health care tax credits based on age, income and geography would be replaced with tax credits based solely on a person s age and not their income or where they live Strongly approve... 13% Somewhat approve... 21% Somewhat disapprove... 21% Strongly disapprove... 28% Don t know... 14% TOTAL APPROVE... 35% TOTAL DISAPPROVE... 50% 25. Existing health care tax credits would be reduced for many older Americans, resulting in a higher price for health insurance Strongly approve... 12% Somewhat approve... 13% Somewhat disapprove... 20% Strongly disapprove... 43% Don t know... 10% TOTAL APPROVE... 25% TOTAL DISAPPROVE... 63% 26. Individuals would no longer be legally required to have health insurance but insurers would be allowed to impose a 30% surcharge on individuals who allow a gap to develop between their existing health plan and a new health plan Strongly approve... 15% Somewhat approve... 22% Somewhat disapprove... 22% Strongly disapprove... 29% Don t know... 11% TOTAL APPROVE... 37% TOTAL DISAPPROVE... 51% 2017 Small Business Majority 11

12 27. In 2020, the Medicaid program would convert to a block-grant system under which each state would receive a fixed amount of money for every person who qualifies for Medicaid. The additional federal funding that covered expanding Medicaid under the ACA would be eliminated. Strongly approve... 14% Somewhat approve... 23% Somewhat disapprove... 18% Strongly disapprove... 27% Don t know... 17% TOTAL APPROVE... 37% TOTAL DISAPPROVE... 45% 28. Those earning more than $774,000 per year (the top 1%) would receive a tax cut of approximately $33,000 per person by reducing the Medicare payroll tax they pay Strongly approve... 11% Somewhat approve... 17% Somewhat disapprove... 16% Strongly disapprove... 42% Don t know... 12% TOTAL APPROVE... 28% TOTAL DISAPPROVE... 58% 29. Health insurance companies could charge up to five times more to insure older Americans than they would charge to insure younger Americans, resulting in higher insurance costs for older entrepreneurs and for businesses with older employees Strongly approve... 9% Somewhat approve... 12% Somewhat disapprove... 17% Strongly disapprove... 49% Don t know... 10% TOTAL APPROVE... 21% TOTAL DISAPPROVE... 66% 30. Millions of young adults are able to stay on their parents health care plans until age 26, providing health insurance to additional 3.1 million young people who were not previously covered Strongly approve... 35% Somewhat approve... 30% Somewhat disapprove... 15% Strongly disapprove... 12% Don t know... 7% TOTAL APPROVE... 65% TOTAL DISAPPROVE... 27% 2017 Small Business Majority 12

13 31. Insurance companies are prevented from charging you more or denying you coverage based on a preexisting condition such as cancer or diabetes Strongly approve... 50% Somewhat approve... 25% Somewhat disapprove... 10% Strongly disapprove... 8% Don t know... 6% TOTAL APPROVE... 75% TOTAL DISAPPROVE... 18% 32. Now that you have had time to review specific provisions of the American Health Care Act do you support or oppose of the American Health Care Act, which repeals and replaces the Patient Protection and Affordable Care Act, also known as Obamacare? Strongly support... 14% Somewhat support... 27% Somewhat oppose... 18% Strongly oppose... 33% Don t know... 8% TOTAL SUPPORT... 41% TOTAL OPPOSE... 51% 33. If you had to make a choice between the Patient Protection and Affordable Care Act and the American Health Care Act, which plan would you choose? Strongly Patient Protection and Affordable Care Act... 39% Not strongly Patient Protection and Affordable Care Act... 10% Not strongly American Health Care Act... 10% Strongly American Health Care Act... 16% Both equally... 5% Neither... 14% Don t know... 6% TOTAL PATIENT PROTECTION AND AFFORDABLE CARE ACT... 49% TOTAL AMERICAN HEALTH CARE ACT... 25% 34. How would you categorize your business? Agriculture... 4% Construction... 10% Financial, insurance or legal services... 7% Information technology... 4% Manufacturing... 5% Medical or dental... 2% Real estate... 4% Restaurant or food service... 2% Retail... 15% Other non-retail services... 11% Wholesale trade... 4% Other... 29% Not sure/refused to answer... 1% 2017 Small Business Majority 13

14 35. In what year were you born? % % % % % Refused... 0% 36. Generally speaking, do you think of yourself as a Republican, a Democrat, or an Independent? Democrat... 28% Independent... 38% Republican... 27% Other... 3% Don t know... 1% 37. IF INDEPENDENT, OTHER OR DON T KNOW: Do you think of yourself as closer to the Republican or Democratic Party? (214 respondents) Closer to Democrats... 25% Closer to Republicans... 31% Neither... 42% Don t know... 2% Refused... <1% 38. Again, just for statistical purposes what was the gross revenue of your business in 2016? Less than $100, % Between $100,000 and $250, % Between $250,001 and $500, % Between $500,001 and $1 million... 10% Between $1 million and $2 million... 7% Between $2 million and $5 million... 4% More than $5 million... 1% Don t know... 1% Refused... 4% 39. What is your race? White... 82% African American or Black... 7% Hispanic of Chicano... 4% Asian or Pacific Islander... 4% American Indian... <1% Other... <1% Biracial or multiracial... 1% Don t know... 0% Refused... <1% 40. Please indicate your gender Male... 48% Female... 52% 2017 Small Business Majority 14

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